3 Reasons I'll Never Buy a New Car

Car commercials know how to make shelling out $30,000 or more seem tempting -- sleek designs, high-tech features, and beautiful scenery that has you itching to get behind the wheel. But personally, I'm sticking with my 15-year-old SUV, at least until it breaks down.

I know one day I'll probably have to get a different vehicle, but even when I do, I'm not coughing up the cash for a new model, no matter how many cool features it has. Here's why.

1. Older cars are cheaper

The value of a new vehicle depreciates by about 20% during the first year, according to Kelley Blue Book, and a good chunk of this happens the moment you drive the car off the lot. By purchasing a car just one model year older, you can save yourself some serious cash.

It's true that when purchasing a used vehicle, you sometimes have to sift through a pile of lemons to find a gem. But well-kept used vehicles without major issues exist, and that's where I plan to focus my attention when I eventually get around to shopping for a new car.

If you decide to go this route, you may want to bring a mechanically inclined person along with you to inspect the vehicle for potential problems before you buy. And if any arise, weigh the cost of repairs with the purchase price to decide whether it's worth it.

2. Older cars are cheaper to repair

You could argue that newer vehicles are less likely to need repairs than older vehicles, but all cars need maintenance eventually. And when they do, newer cars can be a serious pain in the wallet.

Those high-tech components you loved so much when you bought the car are pretty pricey, and there may not be that many mechanics in your area who know how to replace them. Those who do will probably charge you a premium for their services.

I'm lucky enough to have a live-in mechanic (i.e. my husband) who can handle most of my vehicle repairs. But for those of you without this option, you may want to do some research into how much common repairs on a new vehicle might cost you, so you can weigh this when making your decision.

3. Older cars cost less to insure

Vehicle repair prices influence insurance prices, so it shouldn't be a surprise that newer cars cost more to insure than their older counterparts. How much more depends on several factors, including the vehicle's make and model, the driver's record, and their location. But it could amount to hundreds more per year.

Shopping around with some of the best car insurance companies can help drivers reduce their premiums, but it may not be possible to score a new car rate that's as low as the typical premium on an older car. Raising the deductible could help cut costs even further, but then drivers face higher out-of-pocket costs in an accident.

It's possible to get an idea of what the car insurance premiums will be on a new vehicle before buying it by getting quotes ahead of time. Compare these rates to your current auto insurance premiums and be honest with yourself about whether you can fit it in your budget.

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You'll probably want to do some price comparison no matter what type of vehicle you buy. But if you're trying to go easy on your wallet, an older vehicle might be a better choice. Or if your current car is still working fine, hold onto it for a while. You could always wait until it breaks down to shop for a new (or used) car.